May 18, 2008	Sunday	Jamadi-ul-Awwal 12, 1429

NEW YORK, May 17: The dollar lost ground on Friday as a weak reading on US consumer confidence offset a surprisingly robust report on housing starts.

The euro fetched 1.5582 dollars at 2100 GMT, up from 1.5445 late Thursday in New York.

The dollar was meanwhile trading at 104.07 yen after 104.74 on Thursday.

The greenback met selling pressure after the University of Michigan consumer confidence index was reported to have fallen to 59.5 in May from 62.6 in April, a lower reading than had been expected by the market.

Analysts said the reading reflected consumer reaction to rising oil prices, increased joblessness and lower real estate values.

Housing starts and permits hit their highest levels since February, and new home construction rebounded from a 17-year low in March, the Commerce Department said.

Starts rose 8.2 per cent in April from March to an annual rate of 1.032 million units. It was the strongest gain since January 2006 and sharply higher than analysts’ consensus forecast for a cutback to 940,000 units.

At the same time US Treasury Secretary Henry Paulson said he believed a financial crisis, sparked by the near-meltdown in the US housing market, was winding down.—AFP